French Prime Minister Sébastien Lecornu Resigns
France is currently facing political upheaval following the abrupt resignation of Prime Minister Sébastien Lecornu. He stepped down less than a month after taking office, with President Emmanuel Macron accepting his resignation shortly thereafter.
Key Events Surrounding the Resignation
Lecornu’s resignation occurred just hours after he announced his new cabinet. Political tensions intensified as both allies and rivals criticized the lineup, claiming it was either excessively right-wing or insufficiently aligned. His cabinet was scheduled for its first meeting on Monday afternoon but this meeting will no longer proceed due to the resignation.
Implications for the French Government
- Sébastien Lecornu was Macron’s seventh prime minister.
- He was appointed only a few weeks ago, marking a brief tenure.
- This resignation follows a trend of instability, with Lecornu being the fifth prime minister in two years.
This unexpected political change has prompted a sharp decline in financial markets. French stocks and the euro experienced significant drops, impacting investor confidence.
Market Reactions
Notably, French banks faced a major sell-off:
- Societe Generale dropped over 6% on the CAC 40 index.
- BNP Paribas and Credit Agricole also saw substantial declines.
The overall CAC 40 index was reported to be 1.5% down following the announcement. Additionally, the euro weakened against both the dollar and sterling, while French government borrowing costs rose to levels reminiscent of previous political instability.
The situation remains fluid, and updates will continue to emerge as more information becomes available regarding the implications of this significant political shift in France.
